Stored value loyalty card boosts spend by 15%
Quick service restaurants in the US have been seeing as much as a 15% increase in average transaction value when an electronic (stored value) loyalty card accompanies the purchase, according to gift card and loyalty programme provider, Chockstone Inc.
Following a number of stored value loyalty card implementations, Chockstone reports that its stored value platform designed for the quick service restaurant (QSR) industry has had a significant and positive impact on its clients' transaction value trends.
Pre-pay and points The firm's platform, ChockPoint, allows retailers to combine payment, loyalty, and promotional programmes through a single retailer-branded loyalty card. Programme members can then use gift card dollars, earn loyalty points, and redeem points in real time. Additionally, QSRs can instantly deliver promotions based on historical transaction behaviour or an e-mail offer previously sent to the individual cardholder.
Significant lift Based on transaction data from 2003, Chockstone says that some of its retail clients are experiencing a "significant lift" in consumer spend as the transition is made from paper gift certificates to electronic gift/loyalty cards:
- QSRs reported an average of 14.5% increase in the average size of consumer transactions (whether cash, credit, or debit payment) when the stored value loyalty card accompanies the purchase.
- QSR locations are experiencing a 300% - 400% increase, period-on-period, in gift card sales compared to paper gift certificate sales.
- Some 72% of the stored value loyalty cards have been used two or more times since initial activation during the past six months.
"These latest results illustrate the financial benefit realised by retailers who upgrade their paper loyalty and basic gift card programmes to electronic gift and loyalty card programmes," said Jeffrey Lipp, president and CEO for Chockstone.